Nigeria’s naira under pressure after gasoline price hike

dollar to naira

LAGOS May 12 (Reuters) – Nigeria’s naira will likely weaken against the dollar next week after the country increased gasoline prices by 67 percent.

The naira is seen depreciating after the West African country raised gasoline prices by 67 percent.

The local currency weakened to 324 to the dollar on the parallel market on Thursday, down 1.25 percent compared to last week’s close, while trading at 199.40 to the dollar on the official interbank market, around the 197 official peg rate.

“There is dollar scarcity right now in the market, even at 324 naira you can’t find dollar to buy,” one trader told Reuters. Traders said expected pressure from fuel importers could further push down the naira value in the coming days.

Source: Reuters